What is Lakshya 2031? How L&T Finance plans to become an AI-led retail lender
Lakshya 2031 is anchored in a granular, bottom-up strategy, supported by peer benchmarking and L&T Finance’s core strengths. It aims to position the company as a leading AI-enabled BFSI player by driving innovation, strengthening portfolio resilience, and enhancing efficiency through technology.
- Apr 25, 2026,
- Updated Apr 25, 2026 5:16 PM IST
L&T Finance has unveiled “Lakshya 2031,” a long-term strategic roadmap aimed at transforming the company into a risk-first, tech-first, AI-enabled retail financier. The initiative marks a decisive shift toward deep technology integration across lending, underwriting, collections, and customer engagement, positioning LTF among India’s most advanced digital-first non-banking financial companies (NBFCs).
At its core, Lakshya 2031 is built on a granular, bottom-up business strategy, combined with peer benchmarking and the company’s existing strengths. The vision is to establish LTF as a premier AI-enabled BFSI institution by accelerating innovation, improving portfolio resilience, and driving operational efficiency through technology.
Strategic pillars
The roadmap focuses on building a diversified and cycle-resilient loan book with an optimal mix of secured and unsecured lending. It also emphasizes AI-led cross-selling capabilities and productivity gains through automation and streamlined processes.
Under Lakshya 2031, LTF has outlined ambitious yet structured financial goals:
Loan book growth of over 20% Credit cost maintained below 2% Return on Assets (RoA) in the range of 3%–3.2% Return on Equity (RoE) between 16%–18%
These targets reflect a balanced approach—prioritising growth while maintaining asset quality and profitability.
AI at the centre of transformation
A key differentiator of Lakshya 2031 is LTF’s aggressive deployment of artificial intelligence across operations. The company has already demonstrated tangible outcomes from its AI-led initiatives.
In its two-wheeler financing segment, “Project Cyclops” has significantly outperformed industry benchmarks. The portfolio reported a delinquency rate of just 2.8% (30+ days past due), compared to the industry average of 7.1%, indicating superior credit assessment and monitoring.
On the collections side, LTF has transitioned from traditional NLP-based bots to advanced GenAI-powered systems. These AI bots handled over 72 lakh customer interactions across 10 Indian languages in FY26 and contributed to collections exceeding ₹4,000 crore. Notably, the cost per resolution through AI bots stands at around ₹10—dramatically lower than traditional phygital collection methods, which are 40–50 times more expensive.
Efficiency gains are also visible in underwriting. AI-driven tools under “Project Helios” have reduced turnaround times for SME loans—from 21 to 14 hours for self-employed professionals and from 37 to 25 hours for non-professionals. LTF has deployed 10 enterprise-wide AI co-pilots across functions such as fraud detection, legal processing, and credit evaluation.
Improving credit outcomes
AI interventions have also strengthened early-stage credit behaviour. Net Non-Starter (NNS) rates—customers missing their first EMI — have declined sharply in both two-wheeler and farm equipment financing segments since 2024.
On the customer front, LTF’s PLANET app has emerged as a key digital channel, surpassing 2.4 crore downloads as of March 2026. The platform has enabled collections of over ₹9,500 crore, serviced more than 12 crore requests, and sourced loans worth around ₹29,000 crore.
L&T Finance has unveiled “Lakshya 2031,” a long-term strategic roadmap aimed at transforming the company into a risk-first, tech-first, AI-enabled retail financier. The initiative marks a decisive shift toward deep technology integration across lending, underwriting, collections, and customer engagement, positioning LTF among India’s most advanced digital-first non-banking financial companies (NBFCs).
At its core, Lakshya 2031 is built on a granular, bottom-up business strategy, combined with peer benchmarking and the company’s existing strengths. The vision is to establish LTF as a premier AI-enabled BFSI institution by accelerating innovation, improving portfolio resilience, and driving operational efficiency through technology.
Strategic pillars
The roadmap focuses on building a diversified and cycle-resilient loan book with an optimal mix of secured and unsecured lending. It also emphasizes AI-led cross-selling capabilities and productivity gains through automation and streamlined processes.
Under Lakshya 2031, LTF has outlined ambitious yet structured financial goals:
Loan book growth of over 20% Credit cost maintained below 2% Return on Assets (RoA) in the range of 3%–3.2% Return on Equity (RoE) between 16%–18%
These targets reflect a balanced approach—prioritising growth while maintaining asset quality and profitability.
AI at the centre of transformation
A key differentiator of Lakshya 2031 is LTF’s aggressive deployment of artificial intelligence across operations. The company has already demonstrated tangible outcomes from its AI-led initiatives.
In its two-wheeler financing segment, “Project Cyclops” has significantly outperformed industry benchmarks. The portfolio reported a delinquency rate of just 2.8% (30+ days past due), compared to the industry average of 7.1%, indicating superior credit assessment and monitoring.
On the collections side, LTF has transitioned from traditional NLP-based bots to advanced GenAI-powered systems. These AI bots handled over 72 lakh customer interactions across 10 Indian languages in FY26 and contributed to collections exceeding ₹4,000 crore. Notably, the cost per resolution through AI bots stands at around ₹10—dramatically lower than traditional phygital collection methods, which are 40–50 times more expensive.
Efficiency gains are also visible in underwriting. AI-driven tools under “Project Helios” have reduced turnaround times for SME loans—from 21 to 14 hours for self-employed professionals and from 37 to 25 hours for non-professionals. LTF has deployed 10 enterprise-wide AI co-pilots across functions such as fraud detection, legal processing, and credit evaluation.
Improving credit outcomes
AI interventions have also strengthened early-stage credit behaviour. Net Non-Starter (NNS) rates—customers missing their first EMI — have declined sharply in both two-wheeler and farm equipment financing segments since 2024.
On the customer front, LTF’s PLANET app has emerged as a key digital channel, surpassing 2.4 crore downloads as of March 2026. The platform has enabled collections of over ₹9,500 crore, serviced more than 12 crore requests, and sourced loans worth around ₹29,000 crore.